What Canadian businesses need to know about the loss of the U.S. De Minimis exemption

Update: Are your CUSMA-compliant shipments being charged United States (U.S.) tariffs? Canada Post has confirmed that, following the elimination of the U.S. De Minimis Exemption, goods sent through the postal stream are now subject to tariff collection, even if they qualify for CUSMA. As a result, the U.S. Postal Service is required to collect duties on these shipments, regardless of CUSMA eligibility. Affecting postal shipments only, commercial couriers like UPS, FedEx, and DHL can still apply CUSMA exemptions. Feel free to send us your Comments or Questions.

As of August 29, 2025, shipments to the U.S. valued under $800 USD are no longer duty- and tariff-free under the U.S. De Minimis exemption, unless the goods meet CUSMA (Canada-United States-Mexico Agreement) requirements. The U.S. administration has eliminated this exemption and now requires that postal services apply duties to shipments, regardless of CUSMA eligibility. Postal services, including Canada Post and Zonos, are subject to this requirement. Commercial couriers like UPS, FedEx and DHL can still apply CUSMA exemptions. According to CFIB surveys, nearly one-third of exporters expect to be negatively affected by the loss of the U.S. De Minimis. Its loss means higher costs, more paperwork, and possible delays.

With the loss of the U.S. de minimis exemption, your business will need to decide how you ship goods to the U.S., because your choice of carrier now affects whether duties apply.

1) Know your shipping options

Below are different shipping options your business can consider. CFIB Members can compare courier rates through CFIB’s ShipTime or Freightcom before choosing a carrier. 

Postal service (Canada Post to USPS): 

Often the simplest and lowest cost option for good for low-risk and low-urgency packages with basic tracking. However, shipments sent through postal channels will now have duties applied, even if your goods are CUSMA-compliant.

Shipments sent through Canada Post get processed through the Zonos system to calculate and collect U.S. duties. Zonos is responsible for collecting duties and remitting them to U.S. Customs and Border Protection (CBP) to ensure compliance with U.S. Executive Order requirements. 

To avoid unexpected costs for you or your customers, review the Canada Post - Ship to the U.S. page before sending your shipment.

Commercial courier (e.g., UPS, FedEx, DHL):

Shipping through a commercial courier (FedEx, UPS, DHL), may allow you to claim the CUSMA exemption on eligible goods. While courier rates can sometimes be higher, claiming CUSMA-compliant status can help you avoid additional duties. Couriers also offer faster delivery and more shipment tracking options.

Consolidators (e.g., Chit Chats, Stallion, Freightcom)

A cost saving option for ecommerce sellers and frequent shippers. You drop off your package with the consolidator, who moves it across the border in bulk and inject it into UPSP or a courier inside the U.S.  Rates are usually lower than using a courier directly. Duty treatment depends on which network they use for final deliver.

LTL or FTL Freight (Commercial Trucking)

Used for larger shipments or bulk inventory. Less Than Truckload (LTL) is used when you share space on a truck with other businesses. Full Truckload (FTL) is for larger loads that fill a truck. A customs broker usually handles border paperwork. This is not used for individual parcels, but good for SMEs that ship inventory to a warehouse or distributor.

2) Tips to maintain your CUSMA Duty Free Treatment at the border

If your goods are CUSMA-compliant, for example, because they are produced or substantially transformed in Canada, the U.S., or Mexico according to the agreement’s rules of origin, they can still enter the U.S. duty- and tariff-free after August 29, 2025.

Tips to consider from CFIB, UPS and FedEx:

• Work with your customs broker or freight forwarder to confirm CUSMA-compliance
• Ensure the accuracy of your manifest data and commercial invoice (now required)
• Ensure CUSMA Certification of origin is included directly on the shipment documentation (commercial invoice) or in a separate Free Trade Agreement certificate
• Low-value shipments of less than $2500 USD (thresholds may vary by courier) may accept a simplified low-value statement instead of the full certificate:

“I hereby certify that the goods covered by this shipment qualify as an originating good for the purposes of preferential tariff treatment under USMCA/T-MEC/CUSMA.”

Blanket certifications may be available to cover multiple shipments of the same goods for up to 12 months, so you don’t need to prepare new paperwork for each parcel. Consider whether you need to get a U.S. bond.

Resources:
Fedex: CUSMA/USMCA/T-MEC
UPS: Canada-US-Mexico Trade Agreement (CUSMA) has replaced NAFTA (North American Free Trade Agreement) on 1 July 2020.

3) Can your goods become CUSMA-compliant?

If you currently import material from outside North America (e.g., parts from Europe or Asia), check whether you can adjust sourcing or production so that your finished products qualify under CUSMA rules.

• Sometimes a small shift in sourcing can make a product eligible.
• Speak to your supplier network or broker about what changes are needed.

Resources to help you:

•  

  CFIB
• Understanding CUSMA Compliance webpost
• Member-exclusive  webinar on CUSMA-Compliance with a special guest from the Canadian Society of Customs Brokers (CSCB) – available in the Member Portal
• The Trade Commissioner Service:
• Understanding CUSMA Compliance webpage explains how to qualify for duty-free access (called "preferential treatment") and what you need to know about the rules of origin and certification of origin
• FAQ section
• Contact Us form for specific questions
• Call their support line at 1-833-760-1167
•  The U.S. Customs and Border Protection (CBP)
• Website on how to export to the U.S. under CUSMA
• Frequently asked questions
• Webinar on “How to Make A USMCA (United States-Mexico-Canada Agreement) Claim”
• For advice tailored to your business, it’s a good idea to speak with a customs broker. They can walk you through the process and help you avoid costly mistakes.
•  You can also reach out to U.S. Customs and Border Protection (CBP),who make the final call on whether your goods qualify for duty-free treatment when entering the U.S
• UPS webinar: Navigating New Norms (Password: y^DYLKq9) & Slides
• UPS: New U.S. Customs requirement for all imports
•  Freightcom: CUSMA Compliance: Your Definitive Business Guide for North American Trade

2) Can your goods become CUSMA compliant?

If you currently import material from outside North America (e.g., parts from Europe or Asia), check whether you can adjust sourcing or production so that your finished products qualify under CUSMA rules.

• Sometimes a small shift in sourcing can make a product eligible.
• Speak to your supplier network or broker about what changes would be needed.

Resources to help you:

• CFIB
  • Understanding CUSMA Compliance webpost
  • Member only webinar on CUSMA-Compliance with a special guest from the Canadian Society of Customs Brokers (CSCB) - available in the Member Portal. 
• The Trade Commissioner Service: 
  • Understanding CUSMA Compliance webpage explains how to qualify for duty-free access (called "preferential treatment") and what you need to know about the rules of origin and certification of origin
  • FAQ section
  • Contact Us form for specific questions
  • Call their support line at 1-833-760-1167
• The U.S. Customs and Border Protection (CBP)
  • Website: how to export to the U.S. under CUSMA
  • Frequently asked questions
  • Webinar: “How to Make A USMCA (United States-Mexico-Canada Agreement) Claim”
• For advice tailored to your business, it’s a good idea to speak with a customs broker. They can walk you through the process and help you avoid costly mistakes.
• You can also reach out to U.S. Customs and Border Protection (CBP),who make the final call on whether your goods qualify for duty-free treatment when entering the U.S
• UPS webinar: Navigating New Norms (Password: y^DYLKq9) & Slides
• UPS: New U.S. Customs requirement for all imports
• Freightcom: CUSMA Compliance: Your Definitive Business Guide for North American Trade

4) What if your goods cannot qualify under CUSMA?

If your products include materials from countries outside CUSMA, those shipments may now face:

• U.S. duties and tariffs: Goods that do not qualify under CUSMA rules of origin will face a tariff, except where specific sectoral tariffs apply (see details here).
• Brokerage or processing fees from Canada Post/USPS or private couriers
• Potential for longer delivery times at the border due to extra paperwork and/or border inspections.

What you can do:

• Review your product codes (HS codes) with a broker to determine which duties apply.
• Communicate with your U.S. customers so they aren’t surprised by added costs.
• Track the impact: keep records of new fees, delays, and lost sales. Real numbers and examples will strengthen CFIB’s advocacy.
• Look into diversifying markets by exploring Canada's other Free Trade Agreements.
• Share your Comments or Questions:  Share your story with CFIB so we can strengthen our advocacy with real examples from small business.

Resources:

• FedEx